Buying a house is just the first step towards making it a residential space. There are a lot of repair works that must be done to ensure safety and convenience. Additionally, people also renovate the living space per their style and taste. All these things require substantial costs that go over the price you pay for the house.
Moreover, if you are buying an already-owned house, it may have some latent issues that can set you back a few bucks. This is why a home warranty is so important. A home warranty covers all the repair and maintenance costs that may come up in the stipulated period.
This is different from homeowner’s insurance because, in the case of the insurance, the liability to pay the premium is on the mortgage lender, and it only covers certain kinds of repairs. In this article, we will discuss everything about home warranties so you can make an informed decision.
What is covered by a home warranty?
The scope of the Illinois home warranty depends on the plan you buy and the company you buy it from, much like your health insurance. Usually, the home warranty is supposed to cover all the mechanical repairs such as plumbing, electrical, floor repairs, etc.
However, some of the premium plans also offer appliances coverage for refrigerators, ovens, washers, etc. But you must be diligent when buying these plans and read all the caveats carefully.
Most companies do not offer appliances coverage in case of accidental misuse and intentional damage. Additionally, there may be some pre-existing conditions to the contract, such as non-coverage of pre-documented damage. Hence, you must read all the term-related documents carefully.
How much does a home warranty cost?
The price spectrum of a home warranty depends on a lot of variables. Firstly, it depends on the company you are purchasing it from. Next, it depends on your house size. Lastly, the companies assess your house and draw up a customized plan for you.
During the assessment, insurance companies also factor in the loss history. Loss history refers to the probability of an item breaking down. Generally, a home warranty can cost you somewhere between $300-$500.
Additionally, you will also have to pay a one-time service fee of $75. Also, if you have a pool, bathtubs, ice-makers, etc., you can opt for additional coverage for an extra 100 bucks.
How do home warranties work?
Let’s take a look at the step-by-step procedure to enforce your home warranty in case of mechanical repairs or appliance damage:
- First, you make a call to the home warranty company. You can call your agent or the customer service number.
- Next, you will be visited by a designated contractor appointed by your insurance company.
- The contractor will charge you a service fee according to the terms of your plan.
- The contractor will inspect your house to diagnose the problem and send the details of repair to the company to get it approved.
- All the repair costs will be borne by your insurance company, and they will pay the contractor.